Texas 2013 - 83rd Regular

Texas Senate Bill SB1920 Compare Versions

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1	1	By: Hinojosa S.B. No. 1920
2	2	(In the Senate - Filed May 3, 2013; May 6, 2013, read first
3	3	time and referred to Committee on Intergovernmental Relations;
4	4	May 10, 2013, reported favorably by the following vote:
5	5	Yeas 5, Nays 0; May 10, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the creation of the Hidalgo County Hospital District;
11	11	granting the authority to impose a tax and issue bonds; granting the
12	12	power of eminent domain.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle A, Title 3, Special District Local Laws
15	15	Code, is amended by adding Chapter 1122 to read as follows:
16	16	CHAPTER 1122. HIDALGO COUNTY HOSPITAL DISTRICT
17	17	SUBCHAPTER A. GENERAL PROVISIONS
18	18	Sec. 1122.001. DEFINITIONS. In this chapter:
19	19	(1) "Board" means the board of directors of the
20	20	district.
21	21	(2) "Director" means a member of the board.
22	22	(3) "District" means the Hidalgo County Hospital
23	23	District.
24	24	Sec. 1122.002. DISTRICT AUTHORIZATION. The Hidalgo County
25	25	Hospital District may be created and, if created, operates and is
26	26	financed as provided by Section 9, Article IX, Texas Constitution,
27	27	and by this chapter.
28	28	Sec. 1122.003. ESSENTIAL PUBLIC FUNCTION. The district is
29	29	a public entity performing an essential public function.
30	30	Sec. 1122.004. DISTRICT TERRITORY. The boundaries of the
31	31	district are coextensive with the boundaries of Hidalgo County.
32	32	Sec. 1122.005. DISTRICT SUPPORT AND MAINTENANCE NOT STATE
33	33	OBLIGATION. The state may not be obligated for the support or
34	34	maintenance of the district.
35	35	Sec. 1122.006. RESTRICTION ON STATE FINANCIAL ASSISTANCE.
36	36	The legislature may not make a direct appropriation for the
37	37	construction, maintenance, or improvement of a district facility.
38	38	SUBCHAPTER A-1. TEMPORARY PROVISIONS
39	39	Sec. 1122.021. CREATION ELECTION; ORDERING ELECTION.
40	40	(a) The district may be created and a tax may be authorized only if
41	41	the creation and the tax are approved by a majority of the
42	42	registered voters of the territory of the proposed district voting
43	43	at an election called and held for that purpose.
44	44	(b) The Hidalgo County Commissioners Court shall order an
45	45	election for the registered voters of Hidalgo County on the
46	46	question of creation of the Hidalgo County Hospital District if the
47	47	commissioners court receives a petition requesting an election that
48	48	is signed by at least 50 registered voters who are residents of
49	49	Hidalgo County.
50	50	(c) The order calling an election under this section must
51	51	state:
52	52	(1) the nature of the election, including the
53	53	proposition that is to appear on the ballot;
54	54	(2) the date of the election;
55	55	(3) the hours during which the polls will be open; and
56	56	(4) the location of the polling places.
57	57	(d) Section 41.001(a), Election Code, does not apply to an
58	58	election ordered under this section.
59	59	(e) The Hidalgo County Commissioners Court shall give
60	60	notice of an election under this section by publishing a
61	61	substantial copy of the election order in a newspaper with general
62	62	circulation in Hidalgo County once a week for two consecutive
63	63	weeks. The first publication must appear not later than the 30th
64	64	day before the date set for the election.
65	65	(f) The ballot for an election under this section must be
66	66	printed to permit voting for or against the proposition: "The
67	67	creation of the Hidalgo County Hospital District, providing for the
68	68	imposition of an ad valorem tax at a rate not to exceed 75 cents on
69	69	each $100 valuation on all taxable property in the district."
70	70	(g) The Hidalgo County Commissioners Court shall find that
71	71	the Hidalgo County Hospital District is created if a majority of the
72	72	voters voting in the election held under this section favor the
73	73	creation of the district.
74	74	Sec. 1122.022. TEMPORARY DIRECTORS. (a) If the creation
75	75	of the district is approved at the election held under Section
76	76	1122.021, the Hidalgo County Commissioners Court shall appoint five
77	77	temporary directors to represent the district at large.
78	78	(b) Temporary directors serve until the date of the next
79	79	regular election of directors that occurs after the date of the
80	80	election held under Section 1122.021 and that allows sufficient
81	81	time to comply with other requirements of law.
82	82	(c) A vacancy on the temporary board of directors shall be
83	83	filled by appointment by the Hidalgo County Commissioners Court.
84	84	(d) A person must be a qualified voter of the district to
85	85	serve as a temporary director.
86	86	(e) An employee of the district may not serve as a temporary
87	87	director.
88	88	Sec. 1122.023. TEMPORARY OFFICERS. (a) The temporary
89	89	board shall elect a president and a vice president from among the
90	90	temporary directors.
91	91	(b) The temporary board shall appoint a secretary, who need
92	92	not be a temporary director.
93	93	(c) The temporary board shall fill a vacancy in a board
94	94	office for the remainder of the unexpired term.
95	95	SUBCHAPTER B. DISTRICT ADMINISTRATION
96	96	Sec. 1122.051. BOARD ELECTION; TERM. (a) The board
97	97	consists of five directors elected at large.
98	98	(b) An election shall be held each year on an authorized
99	99	uniform election date to elect the appropriate number of directors.
100	100	(c) Directors serve staggered two-year terms.
101	101	Sec. 1122.052. NOTICE. Notice of the directors' election
102	102	shall be published at least once in a newspaper with general
103	103	circulation in the district in accordance with Section 4.003(a),
104	104	Election Code.
105	105	Sec. 1122.053. QUALIFICATION FOR OFFICE. (a) To be
106	106	eligible to hold office on the board, a person must be:
107	107	(1) a resident of the district; and
108	108	(2) a qualified voter.
109	109	(b) An administrator or an employee of the district may not
110	110	serve as a director.
111	111	Sec. 1122.054. DIRECTOR'S BOND. (a) Before assuming the
112	112	duties of office, each director must execute a bond in the amount of
113	113	$5,000 payable to the district and conditioned on the faithful
114	114	performance of the director's duties.
115	115	(b) The bond shall be kept in the permanent records of the
116	116	district.
117	117	(c) The board may pay for a director's bond with district
118	118	money.
119	119	Sec. 1122.055. BOARD VACANCY. If a vacancy occurs in the
120	120	office of director, the remaining directors shall appoint a
121	121	director for the remainder of the unexpired term.
122	122	Sec. 1122.056. OFFICERS. (a) The board shall elect a
123	123	president and a vice president from among the directors.
124	124	(b) The board shall appoint a secretary, who need not be a
125	125	director.
126	126	(c) Each officer of the board serves a one-year term.
127	127	(d) The board shall fill a vacancy in a board office for the
128	128	remainder of the unexpired term.
129	129	Sec. 1122.057. COMPENSATION; REIMBURSEMENT. A director or
130	130	officer serves without compensation but may be reimbursed for
131	131	actual expenses incurred in the performance of official duties.
132	132	The expenses must be:
133	133	(1) reported in the district's records; and
134	134	(2) approved by the board.
135	135	Sec. 1122.058. VOTING REQUIREMENT. A concurrence of a
136	136	majority of the directors voting is necessary in matters relating
137	137	to district business.
138	138	Sec. 1122.059. DISTRICT ADMINISTRATOR; ADMINISTRATOR'S
139	139	BOND. (a) The board may appoint a qualified person as district
140	140	administrator.
141	141	(b) The district administrator serves at the will of the
142	142	board.
143	143	(c) The district administrator is entitled to compensation
144	144	determined by the board.
145	145	(d) Before assuming the duties of district administrator,
146	146	the administrator must execute a bond payable to the district in an
147	147	amount not less than $5,000, as determined by the board,
148	148	conditioned on the faithful performance of the administrator's
149	149	duties.
150	150	(e) The board may pay for the bond with district money.
151	151	Sec. 1122.060. GENERAL DUTIES OF DISTRICT ADMINISTRATOR.
152	152	Subject to the limitations prescribed by the board, the district
153	153	administrator shall:
154	154	(1) supervise the work and activities of the district;
155	155	and
156	156	(2) direct the general affairs of the district.
157	157	Sec. 1122.061. ASSISTANT DISTRICT ADMINISTRATOR; ATTORNEY.
158	158	(a) The board may appoint qualified persons as assistant district
159	159	administrator and attorney for the district.
160	160	(b) The assistant district administrator and attorney for
161	161	the district serve at the will of the board.
162	162	(c) The assistant district administrator and attorney for
163	163	the district are entitled to compensation determined by the board.
164	164	Sec. 1122.062. EMPLOYEES. (a) The district may employ
165	165	nurses, technicians, fiscal agents, accountants, architects,
166	166	additional attorneys, and other necessary employees.
167	167	(b) The board may delegate to the district administrator the
168	168	authority to employ persons for the district.
169	169	Sec. 1122.063. RECRUITMENT OF MEDICAL STAFF AND EMPLOYEES.
170	170	The board may spend district money, enter into agreements, and take
171	171	other necessary actions to recruit physicians and other persons to
172	172	serve as medical staff members or district employees. The actions
173	173	may include:
174	174	(1) advertising and marketing;
175	175	(2) paying travel, recruitment, and relocation
176	176	expenses;
177	177	(3) providing a loan or scholarship to a physician or a
178	178	person currently enrolled in health care education courses at an
179	179	institution of higher education who contracts to become a medical
180	180	staff member or district employee; or
181	181	(4) contracting with a full-time medical student or
182	182	other student in a health occupation who is enrolled in and in good
183	183	standing at an accredited medical school, college, or university to
184	184	pay the student's tuition or other expenses for the consideration
185	185	of the student agreeing to serve as an employee or independent
186	186	contractor for the district.
187	187	Sec. 1122.064. APPOINTMENT AND REMOVAL OF MEDICAL STAFF.
188	188	The board may:
189	189	(1) appoint to the medical staff any doctor the board
190	190	considers necessary for the efficient operation of the district;
191	191	(2) remove any doctor from the medical staff, after
192	192	due process, if the board considers the doctor's removal necessary
193	193	for the efficient operation of the district; and
194	194	(3) make temporary appointments to the medical staff
195	195	as the board considers necessary.
196	196	Sec. 1122.065. RETIREMENT BENEFITS. The board may provide
197	197	retirement benefits for district employees by:
198	198	(1) establishing or administering a retirement
199	199	program; or
200	200	(2) participating in:
201	201	(A) the Texas County and District Retirement
202	202	System; or
203	203	(B) another statewide retirement system in which
204	204	the district is eligible to participate.
205	205	SUBCHAPTER C. POWERS AND DUTIES
206	206	Sec. 1122.101. DISTRICT RESPONSIBILITY. The district has
207	207	full responsibility for operating hospital facilities and
208	208	providing medical and hospital care for the district's needy
209	209	residents.
210	210	Sec. 1122.102. MANAGEMENT, CONTROL, AND ADMINISTRATION.
211	211	The board shall manage, control, and administer the hospital system
212	212	and the money and resources of the district.
213	213	Sec. 1122.103. RULES. The board may adopt rules governing:
214	214	(1) the operation of the hospital and hospital system;
215	215	and
216	216	(2) the duties, functions, and responsibilities of
217	217	district staff and employees.
218	218	Sec. 1122.104. PURCHASING AND ACCOUNTING PROCEDURES. The
219	219	board may prescribe:
220	220	(1) the method of making purchases and expenditures by
221	221	and for the district; and
222	222	(2) accounting and control procedures for the
223	223	district.
224	224	Sec. 1122.105. PROVISION OF CERTAIN HEALTH SERVICES.
225	225	(a) The district may operate or provide for the operation of a
226	226	mobile emergency medical service.
227	227	(b) The district may operate or provide for home health
228	228	services, long-term care, skilled nursing care, intermediate
229	229	nursing care, or hospice care.
230	230	Sec. 1122.106. DISTRICT PROPERTY, FACILITIES, AND
231	231	EQUIPMENT. (a) The board shall determine:
232	232	(1) the type, number, and location of buildings
233	233	required to maintain an adequate hospital system; and
234	234	(2) the type of equipment necessary for hospital care.
235	235	(b) The board may:
236	236	(1) acquire property, facilities, and equipment for
237	237	the district for use in the hospital system;
238	238	(2) mortgage or pledge the property, facilities, or
239	239	equipment as security for payment of the purchase price;
240	240	(3) sell or otherwise dispose of property, facilities,
241	241	or equipment for the district; or
242	242	(4) lease hospital facilities for the district.
243	243	Sec. 1122.107. OPERATING AND MANAGEMENT CONTRACTS. The
244	244	board may enter into operating or management contracts relating to
245	245	hospital facilities for the district.
246	246	Sec. 1122.108. SERVICE CONTRACTS. (a) The board may
247	247	contract with a public or private hospital, a political subdivision
248	248	of the state, or a state or federal agency for the district to
249	249	provide a mobile emergency medical service or other health care
250	250	services needed to provide for the investigatory or welfare needs
251	251	of residents of the district.
252	252	(b) The board may contract with a person to receive or
253	253	supply the services the board considers necessary for the effective
254	254	operation of the district.
255	255	Sec. 1122.109. EMINENT DOMAIN. (a) The district may
256	256	exercise the power of eminent domain to acquire a fee simple or
257	257	other interest in property located in district territory if the
258	258	interest is necessary for the district to exercise the rights or
259	259	authority conferred by this chapter.
260	260	(b) The district must exercise the power of eminent domain
261	261	in the manner provided by Chapter 21, Property Code, except that the
262	262	district is not required to deposit with the trial court money or a
263	263	bond as provided by Section 21.021(a), Property Code.
264	264	(c) In a condemnation proceeding brought by the district,
265	265	the district is not required to:
266	266	(1) pay in advance or provide bond or other security
267	267	for costs in the trial court;
268	268	(2) provide bond for the issuance of a temporary
269	269	restraining order or a temporary injunction; or
270	270	(3) provide a bond for costs or a supersedeas bond on
271	271	an appeal or petition for review.
272	272	Sec. 1122.110. COST OF RELOCATING OR ALTERING PROPERTY. In
273	273	exercising the power of eminent domain, if the board requires
274	274	relocating, raising, lowering, rerouting, changing the grade, or
275	275	altering the construction of any railroad, highway, pipeline, or
276	276	electric transmission and electric distribution, telegraph, or
277	277	telephone line, conduit, pole, or facility, the district shall pay
278	278	the actual cost of that activity to provide a comparable
279	279	replacement, without enhancement of facilities, after deducting
280	280	the net salvage value derived from the old facility.
281	281	Sec. 1122.111. GIFTS AND ENDOWMENTS. The board may accept
282	282	for the district a gift or endowment to be held in trust for any
283	283	purpose and under any direction, limitation, or provision in
284	284	writing by the donor that is consistent with the proper management
285	285	of the district.
286	286	Sec. 1122.112. PAYMENT FOR TREATMENT; PROCEDURES.
287	287	(a) When a person who resides in the district is admitted as a
288	288	patient to a district facility, the district administrator may have
289	289	an inquiry made into the financial circumstances of:
290	290	(1) the patient; and
291	291	(2) a relative of the patient who is legally
292	292	responsible for the patient's support.
293	293	(b) To the extent that the patient or a relative of the
294	294	patient who is legally responsible for the patient's support cannot
295	295	pay for care and treatment provided by the district, the district
296	296	shall supply the care and treatment without charging the patient or
297	297	the patient's relative.
298	298	(c) On determining that the patient or a relative legally
299	299	responsible for the patient's support can pay for all or part of the
300	300	care and treatment provided by the district, the district
301	301	administrator shall report that determination to the board, and the
302	302	board shall issue an order directing the patient or the relative to
303	303	pay the district a specified amount each week. The amount must be
304	304	based on the person's ability to pay.
305	305	(d) The district administrator may collect money owed to the
306	306	district from the patient's estate or from that of a relative
307	307	legally responsible for the patient's support in the manner
308	308	provided by law for the collection of expenses in the last illness
309	309	of a deceased person.
310	310	(e) If there is a dispute relating to a person's ability to
311	311	pay or if the district administrator has any doubt concerning a
312	312	person's ability to pay, the board shall call witnesses, hear and
313	313	resolve the question, and issue a final order. The order may be
314	314	appealed to a district court in any county in which the district is
315	315	located. The substantial evidence rule applies to an appeal under
316	316	this subsection.
317	317	Sec. 1122.113. REIMBURSEMENT FOR SERVICES. (a) The board
318	318	shall require a county, municipality, or public hospital located
319	319	outside of the district to reimburse the district for the
320	320	district's care and treatment of a sick or injured person of that
321	321	county, municipality, or hospital, as provided by Chapter 61,
322	322	Health and Safety Code.
323	323	(b) The board shall require the sheriff of Hidalgo County to
324	324	reimburse the district for the district's care and treatment of a
325	325	person who is confined in a jail facility of Hidalgo County and is
326	326	not a resident of the district.
327	327	(c) On behalf of the district, the board may contract with
328	328	the state or federal government for that government to reimburse
329	329	the district for treatment of a sick or injured person.
330	330	Sec. 1122.114. NONPROFIT CORPORATION. (a) The district
331	331	may create and sponsor a nonprofit corporation under the Business
332	332	Organizations Code and may contribute money to or solicit money for
333	333	the corporation.
334	334	(b) A corporation created under this section may use money
335	335	contributed by the district only to provide health care or other
336	336	services the district is authorized to provide under this chapter.
337	337	(c) The corporation may invest the corporation's money in
338	338	any manner in which the district may invest the district's money,
339	339	including investing money as authorized by Chapter 2256, Government
340	340	Code.
341	341	(d) The board shall establish controls to ensure that the
342	342	corporation uses its money as required by this section.
343	343	Sec. 1122.115. LOANS AND GRANTS FOR ECONOMIC DEVELOPMENT
344	344	PURPOSES. Under the authority granted by Section 52-a, Article
345	345	III, Texas Constitution, the district may loan or grant money to any
346	346	person for the development of medical education and research in the
347	347	district.
348	348	Sec. 1122.116. AUTHORITY TO SUE AND BE SUED. The board may
349	349	sue and be sued on behalf of the district.
350	350	Sec. 1122.117. CONSTRUCTION CONTRACTS; ADVERTISING FOR
351	351	CERTAIN CONSTRUCTION CONTRACTS. (a) The board may enter into a
352	352	construction contract on the district's behalf.
353	353	(b) The board may enter into a construction contract only
354	354	after competitive bidding as provided by Subchapter B, Chapter 271,
355	355	Local Government Code, if the amount of the contract is greater than
356	356	the amount provided by Section 271.024 of that code.
357	357	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
358	358	Sec. 1122.151. BUDGET. (a) The district administrator
359	359	shall prepare a proposed annual budget for the district.
360	360	(b) The proposed budget must contain a complete financial
361	361	statement, including a statement of:
362	362	(1) the outstanding obligations of the district;
363	363	(2) the amount of cash on hand to the credit of each
364	364	fund of the district;
365	365	(3) the amount of money received by the district from
366	366	all sources during the previous year;
367	367	(4) the amount of money available to the district from
368	368	all sources during the ensuing year;
369	369	(5) the amount of the balances expected at the end of
370	370	the year in which the budget is being prepared;
371	371	(6) the estimated amount of revenues and balances
372	372	available to cover the proposed budget; and
373	373	(7) the estimated tax rate required.
374	374	Sec. 1122.152. NOTICE; HEARING; ADOPTION OF BUDGET.
375	375	(a) The board shall hold a public hearing on the proposed budget.
376	376	(b) The board shall publish notice of the hearing in a
377	377	newspaper with general circulation in the district not later than
378	378	the 10th day before the date of the hearing.
379	379	(c) Any district resident is entitled to be present and
380	380	participate at the hearing.
381	381	(d) At the conclusion of the hearing, the board shall adopt
382	382	a budget by acting on the budget proposed by the district
383	383	administrator. The board may make a change in the proposed budget
384	384	that the board determines to be in the interests of the taxpayers.
385	385	(e) The budget is effective only after adoption by the
386	386	board.
387	387	Sec. 1122.153. AMENDMENT OF BUDGET. After the budget is
388	388	adopted, the budget may be amended on the board's approval.
389	389	Sec. 1122.154. FISCAL YEAR. (a) The district operates
390	390	according to a fiscal year established by the board.
391	391	(b) The fiscal year may not be changed:
392	392	(1) during a period in which revenue bonds of the
393	393	district are outstanding; or
394	394	(2) more than once in a 24-month period.
395	395	Sec. 1122.155. ANNUAL AUDIT. The board shall have an annual
396	396	audit made of the financial condition of the district.
397	397	Sec. 1122.156. INSPECTION OF ANNUAL AUDIT AND DISTRICT
398	398	RECORDS. The annual audit and other district records are open to
399	399	inspection during regular business hours at the principal office of
400	400	the district.
401	401	Sec. 1122.157. FINANCIAL REPORT. As soon as practicable
402	402	after the close of each fiscal year, the district administrator
403	403	shall prepare for the board a sworn statement of the amount of
404	404	district money and an account of the disbursement of that money.
405	405	Sec. 1122.158. SHORT-TERM FINANCING. The district may
406	406	borrow money through short-term financing.
407	407	Sec. 1122.159. DEBT LIMITATION. Except as provided by this
408	408	chapter and Chapter 1207, Government Code, the district may not
409	409	incur a debt payable from district revenue other than revenue
410	410	available in the current fiscal year and the immediately following
411	411	fiscal year of the district.
412	412	Sec. 1122.160. DEPOSITORY. (a) The board shall select at
413	413	least one bank to serve as a depository for district money.
414	414	(b) The board may solicit bids from local financial
415	415	institutions to determine which institution may serve as a
416	416	depository for district money.
417	417	(c) District money, other than money invested as provided by
418	418	Section 1122.161 and money transmitted to a bank for payment of
419	419	bonds or obligations issued or assumed by the district, shall be
420	420	deposited as received with the depository bank and shall remain on
421	421	deposit. This subsection does not limit the board's power to place
422	422	part of the district's money on time deposit or to purchase
423	423	certificates of deposit.
424	424	Sec. 1122.161. RESTRICTION ON INVESTMENT. The board may
425	425	invest operating, depreciation, or building reserves only in funds
426	426	or securities specified by Chapter 2256, Government Code.
427	427	SUBCHAPTER E. BONDS
428	428	Sec. 1122.201. GENERAL OBLIGATION BONDS. If authorized by
429	429	an election, the board may issue and sell general obligation bonds
430	430	in the name and on the faith and credit of the district to:
431	431	(1) purchase, construct, acquire, repair, or renovate
432	432	buildings or improvements;
433	433	(2) equip buildings or improvements for hospital
434	434	purposes; or
435	435	(3) acquire and operate a mobile emergency medical
436	436	service.
437	437	Sec. 1122.202. TAX TO PAY GENERAL OBLIGATION BONDS.
438	438	(a) At the time general obligation bonds are issued by the
439	439	district under Section 1122.201, the board shall impose an ad
440	440	valorem tax in an amount sufficient to create an interest and
441	441	sinking fund to pay the principal of and interest on the bonds as
442	442	the bonds mature.
443	443	(b) The tax required by this section together with any other
444	444	tax the district imposes in any year may not exceed the limit
445	445	approved by the voters at the election authorizing the imposition
446	446	of taxes.
447	447	Sec. 1122.203. GENERAL OBLIGATION BOND ELECTION. (a) The
448	448	district may issue general obligation bonds only if the bonds are
449	449	authorized by a majority of the voters voting in an election held
450	450	for that purpose.
451	451	(b) The board may order a bond election. The order calling
452	452	the election must specify:
453	453	(1) the nature and date of the election;
454	454	(2) the hours during which the polls will be open;
455	455	(3) the location of polling places;
456	456	(4) the amounts of the bonds to be authorized; and
457	457	(5) the maximum maturity of the bonds.
458	458	(c) Notice of a bond election must be given as provided by
459	459	Chapter 1251, Government Code.
460	460	(d) The board shall declare the results of the election.
461	461	Sec. 1122.204. REVENUE BONDS. (a) The board may issue
462	462	revenue bonds to:
463	463	(1) acquire, purchase, construct, repair, renovate,
464	464	or equip buildings or improvements for hospital purposes;
465	465	(2) acquire sites to be used for hospital purposes; or
466	466	(3) acquire and operate a mobile emergency medical
467	467	service to assist the district in carrying out its hospital
468	468	purposes.
469	469	(b) The bonds must be payable from and secured by a pledge of
470	470	all or part of the revenues derived from the operation of the
471	471	district's hospital system.
472	472	(c) The bonds may be additionally secured by a mortgage or
473	473	deed of trust lien on all or part of the district property.
474	474	(d) The bonds must be issued in the manner provided by
475	475	Sections 264.042, 264.043, 264.046, 264.047, 264.048, and 264.049,
476	476	Health and Safety Code, for issuance of revenue bonds by county
477	477	hospital authorities.
478	478	Sec. 1122.205. MATURITY. District bonds must mature not
479	479	later than 40 years after the date of their issuance.
480	480	Sec. 1122.206. EXECUTION OF BONDS. (a) The board
481	481	president shall execute district bonds in the district's name.
482	482	(b) The board secretary shall countersign the bonds in the
483	483	manner provided by Chapter 618, Government Code.
484	484	Sec. 1122.207. BONDS NOT SUBJECT TO TAXATION. The
485	485	following are not subject to taxation by the state or by a political
486	486	subdivision of the state:
487	487	(1) bonds issued by the district;
488	488	(2) any transaction relating to the bonds; and
489	489	(3) profits made in the sale of the bonds.
490	490	SUBCHAPTER F. AD VALOREM TAX
491	491	Sec. 1122.251. IMPOSITION OF AD VALOREM TAX. (a) The
492	492	board shall impose a tax on all property in the district subject to
493	493	hospital district taxation.
494	494	(b) The tax may be used to pay:
495	495	(1) indebtedness issued or assumed by the district;
496	496	and
497	497	(2) the maintenance and operating expenses of the
498	498	district.
499	499	(c) The district may not impose a tax to pay the principal of
500	500	or interest on revenue bonds issued under this chapter.
501	501	Sec. 1122.252. TAX RATE. (a) The tax rate on all taxable
502	502	property in the district for all purposes may not exceed 75 cents on
503	503	each $100 valuation of the property according to the most recent
504	504	certified tax appraisal roll of the district.
505	505	(b) In setting the tax rate, the board shall consider
506	506	district income from sources other than taxation.
507	507	Sec. 1122.253. TAX ASSESSOR-COLLECTOR. The board may
508	508	provide for the appointment of a tax assessor-collector for the
509	509	district or may contract for the assessment and collection of taxes
510	510	as provided by the Tax Code.
511	511	SUBCHAPTER G. DISSOLUTION
512	512	Sec. 1122.301. DISSOLUTION; ELECTION. (a) The district
513	513	may be dissolved only on approval of a majority of the voters voting
514	514	in an election held for that purpose.
515	515	(b) The board may order an election on the question of
516	516	dissolving the district and disposing of the district's assets and
517	517	obligations.
518	518	(c) The board shall order an election if the board receives
519	519	a petition requesting an election that is signed by at least 15
520	520	percent of the district's registered voters.
521	521	(d) The order calling the election must state:
522	522	(1) the nature of the election, including the
523	523	proposition that is to appear on the ballot;
524	524	(2) the date of the election;
525	525	(3) the hours during which the polls will be open; and
526	526	(4) the location of the polling places.
527	527	(e) Section 41.001(a), Election Code, does not apply to an
528	528	election ordered under this section.
529	529	Sec. 1122.302. NOTICE OF ELECTION. (a) The board shall
530	530	give notice of an election under this subchapter by publishing a
531	531	substantial copy of the election order in a newspaper with general
532	532	circulation in the district once a week for two consecutive weeks.
533	533	(b) The first publication must appear not later than the
534	534	30th day before the date set for the election.
535	535	Sec. 1122.303. BALLOT. The ballot for an election under
536	536	this subchapter must be printed to permit voting for or against the
537	537	proposition: "The dissolution of the Hidalgo County Hospital
538	538	District."
539	539	Sec. 1122.304. ELECTION RESULTS. (a) If a majority of the
540	540	votes in an election under this subchapter favor dissolution, the
541	541	board shall order that the district be dissolved.
542	542	(b) If a majority of the votes in an election under this
543	543	subchapter do not favor dissolution, the board shall continue to
544	544	administer the district, and another election on the question of
545	545	dissolution may not be held before the first anniversary of the date
546	546	of the most recent election to dissolve the district.
547	547	Sec. 1122.305. TRANSFER OR ADMINISTRATION OF ASSETS.
548	548	(a) If a majority of the votes in an election under this subchapter
549	549	favor dissolution, the board shall:
550	550	(1) transfer the land, buildings, improvements,
551	551	equipment, and other assets belonging to the district to Hidalgo
552	552	County or another governmental entity in Hidalgo County; or
553	553	(2) administer the property, assets, and debts of the
554	554	district until all money has been disposed of and all district debts
555	555	have been paid or settled.
556	556	(b) If the board makes the transfer under Subsection (a)(1),
557	557	the county or entity assumes all debts and obligations of the
558	558	district at the time of the transfer and the district is dissolved.
559	559	(c) If Subsection (a)(1) does not apply and the board
560	560	administers the property, assets, and debts of the district under
561	561	Subsection (a)(2), the district is dissolved when all money has
562	562	been disposed of and all district debts have been paid or settled.
563	563	Sec. 1122.306. IMPOSITION OF TAX AND RETURN OF SURPLUS
564	564	TAXES. (a) After the board determines that the district is
565	565	dissolved, the board shall:
566	566	(1) determine the debt owed by the district; and
567	567	(2) impose on the property included in the district's
568	568	tax rolls a tax that is in proportion of the debt to the property
569	569	value.
570	570	(b) On the payment of all outstanding debts and obligations
571	571	of the district, the board shall order the secretary to return to
572	572	each district taxpayer the taxpayer's pro rata share of all unused
573	573	tax money.
574	574	(c) A taxpayer may request that the taxpayer's share of
575	575	surplus tax money be credited to the taxpayer's county taxes. If a
576	576	taxpayer requests the credit, the board shall direct the secretary
577	577	to transmit the funds to the tax assessor-collector for Hidalgo
578	578	County.
579	579	Sec. 1122.307. REPORT; DISSOLUTION ORDER. (a) After the
580	580	district has paid all its debts and has disposed of all its money
581	581	and other assets as prescribed by this subchapter, the board shall
582	582	file a written report with the Hidalgo County Commissioners Court
583	583	summarizing the board's actions in dissolving the district.
584	584	(b) Not later than the 10th day after the date the Hidalgo
585	585	County Commissioners Court receives the report and determines that
586	586	the requirements of this subchapter have been fulfilled, the
587	587	commissioners court shall enter an order dissolving the district
588	588	and releasing the board from any further duty or obligation.
589	589	SECTION 2. (a) The members of the board of directors of the
590	590	Hidalgo County Hospital District elected at the first election held
591	591	under Section 1122.051, Special District Local Laws Code, as added
592	592	by this Act, shall draw lots to determine which three directors
593	593	serve a two-year term and which two directors serve a one-year term.
594	594	(b) Successor directors shall serve two-year terms.
595	595	SECTION 3. Proof of publication of the notice required in
596	596	the enactment of this Act under the provisions of Section 9, Article
597	597	IX, Texas Constitution, has been made in the manner and form
598	598	provided by law pertaining to the enactment of local and special
599	599	laws, and the notice is found and declared proper and sufficient to
600	600	satisfy the requirement.
601	601	SECTION 4. This Act takes effect immediately if it receives
602	602	a vote of two-thirds of all the members elected to each house, as
603	603	provided by Section 39, Article III, Texas Constitution. If this
604	604	Act does not receive the vote necessary for immediate effect, this
605	605	Act takes effect September 1, 2013.
606	606	* * * * *